Bulgarian Economy

In economic aspect Bulgaria meets the criteria of a medium developed country. Since the last 2011 Century decade and up to the present day the country has been on the way of forming the free market economy. The majority of the state-run enterprises have been privatized; the same applies to the farming land. The private sector now produces almost 100% other total added value coming from the agrarian segment of economy, and well over 2/3 of that coming from the industry and services.

Compared to the remaining part of the ex-socialist countries in Central Europe Bulgaria still receives a minor inflow of foreign investments and the bulk of them is mainly concentrated in the southwest of the country and Sofia, respectively. In the year 1997 the country was sucked in the whirlpool of hyperinflation, and since 1997 has been under the currency board supervision. Rated by its GNP (Gross National Product) Bulgaria takes a position in the line considerably behind Slovenia, Czech Republic, Hungary, Poland and Slovakia, and slightly exceeds the Republic of Macedonia, Albania, Bosnia and Herzegovina.

Recent trends provide indications of an increase in industrial production, enhancement in quality and competitiveness of Bulgaria’s industrial products, increasing change of export orientation toward the West, rise in struggle against the so called industrial racket (economic form of blackmail in industry), elusion of tax payments, certain successes mark the efforts to overcome the economic backwardness in particular administrative areas of the country.

One of the major weaknesses of the economic life is the enormous external debt combined with the local economy’s strong dependence on the power sources import and substantial delay in the development of equipment and technologies. Enhancements of the economic structure are imperative, promotion and back up for a substantial growth and expansion of the economic tourism are needed, significant efforts required to overcome the drawbacks in public transport along with adequate solutions to crucial issues like the elimination of unemployment and rise in the life standards among local population. Chemistry, machine engineering, food-wine-and-tobacco industries are key branches of industry in the country.